How Nokia Could Start Getting Aggressive

Nokia has generally shied away from pursuing rivals for patent royalties, but that could potentially change after the sale of its handset business.

Nokia (NYSE:NOK) is notably hanging on to its wide patent portfolio instead of selling it to Microsoft (NASDAQ:MSFT), opting to license its IP to the software giant instead. To date, the company has primarily used its patents defensively.

Nokia's IP is a valuable asset that it can continue to monetize, and the company could potentially pursue Google (NASDAQ:GOOGL) Android OEMs aggressively for royalties. If so, that would add yet another layer of costs for Android vendors looking to bring devices to market.

Even within Nokia's existing cross-licensing agreements, the company can effectively eliminate its outgoing royalty payments since it will no longer sell handsets, and keep the incoming royalty checks flowing in.

Author

Evan is a Senior Technology Specialist at The Motley Fool. He was previously a Senior Trading Specialist at a major discount broker, and worked briefly at Tesla Motors. Evan graduated from the University of Texas at Austin, and is a CFA charterholder.
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